California Insurance Commissioner Ricardo Lara issued a statement in response to Governor Gavin Newsom’s executive order on insurance stability, highlighting the progress made under the state’s Sustainable Insurance Strategy and the importance of coordinated statewide efforts.
Reinforcing Progress in Insurance Availability
Commissioner Lara emphasized that the Governor’s executive order strengthens ongoing efforts to bring insurance options back to California. He noted that five major insurance companies — including three of the state’s top homeowners carriers — have committed to staying and expanding in California. This marks a shift from past practices when insurers raised rates while reducing policyholders.
The five insurers include:
- Mercury (3rd largest in homeowners market share in 2024)
- CSAA (5th largest)
- USAA (7th largest)
- Pacific Specialty (13th largest)
- California Casualty (30th largest)
All five companies have filed for rate changes of 6.9%, consistent with thousands approved under prior insurance commissioners, while also committing to remain in the state.
A Proactive Statewide Approach
Lara stated that the Department of Insurance has modernized to better anticipate risks, shifting from reactive measures to proactive strategies. He highlighted partnerships with CAL FIRE, CalOES, and other emergency agencies to enhance preparedness, response, and recovery from natural catastrophes and disasters.
According to Lara, this collaboration is designed to reduce risks, protect lives, and create conditions for long-term insurance availability. He stressed the shared goal of ensuring that all Californians — regardless of ZIP Code or income level — can rebuild after disasters.
Accountability and Consumer Protection
The Commissioner reaffirmed his commitment to closely reviewing insurance companies’ rate filings to ensure consumers are not overcharged. He also underscored his role in holding insurers accountable for paying wildfire survivors what they are owed.
Next Steps Under the Governor’s Order
The Governor’s executive order builds on recent progress and directs the Department of Insurance to collaborate with CAL FIRE and other emergency agencies in developing California’s first comprehensive preparedness and recovery report, as outlined in SB 254. This report is expected to expedite statewide resilience efforts and must be submitted to the Governor and State Legislature by April 1, 2026.
In addition, Commissioner Lara continues to serve on the California Earthquake Authority Governing Board and the California Catastrophe Response Council, maintaining coordination with the Wildfire Fund Administrator and the Governor’s Administration.
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